Brother Leaves Open Possibility of Tender Offer for Roland DG

Brother Leaves Open Possibility of Tender Offer for Roland DG

Following a previous announcement of a tender offer to acquire shares of Roland DG, Brother Industries Ltd. disclosed that it would not revise its tender offer due to recent actions of the target company.

Since September 1, 2023, Brother has been engaged in negotiations with Roland DG to discuss the possibility of collaboration to enhance the corporate values of both companies. At that time, Brother already convinced Roland DG that it would be the best partner and submitted the Letter of Intent. On March 13, 2024, Brother officially announced its tender offer of JPY￥ 5,200 (USD$ 33.39) to Roland DG.

However, despite having received the Letter of Intent, it still requested Brother to provide more specific proposals, citing concerns about potential dis-synergies. Meanwhile, Roland DG pursued an alternative management buyout without informing or inviting Brother to the bidding. Additionally, during negotiations with Brother and interviews with the media press, certain officers of Roland DG made unsubstantiated remarks, which can mislead stakeholders and potentially damage Brother’s reputation.

In response to these developments, Brother has taken a firm stance against Roland DG’s insincere conduct. On April 26, 2024, while XYZ K.K. increased its tender offer to JPY￥ 5,370 (USD$34.49), a price higher than Brother’s, Brother decided not to revise its offer. However, Brother remains open to the possibility of initiating the tender offer again if Roland DG demonstrates a constructive attitude and fulfills all the Conditions Precedent to the Tender Offer.

Related:

• Brother Releases Financial Results for Fiscal Year 2023
• Brother Announces Tender Offer of Roland DG
• Brother Expands Printer Production in Philippines

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